Bitcoin (BTC) Loses Key Support at $60K as Pre-Election Bullish Narratives Emerge

Bitcoin just lost its key support level at $60K today, July 4th. In the past 24 hours, the cryptocurrency swung from a $60,555.50 high to a $57,043.96 low.

Bitcoin (BTC) lost its key support level at $60,000 on July 4th. In the past 24 hours, the cryptocurrency has ranged from a high of $60,555.50 to a low of $57,043.96.

As of 10:00 AM, Bitcoin was still trading around the $57,000 level, which is about 4% lower than where it closed yesterday. BTC has also lost a substantial amount of its value in the one-week and one-month charts at 5% and 16%, respectively.

Rising trading volume accompanied the declining prices, with BTC moving between addresses to the tune of $38.36 billion in the same period. Meanwhile, the market capitalization of the digital asset’s 19.72 million circulating supply remained at $1.13 trillion.

The surprising moments in BTC’s recent price dip

Many long-term investors who went long on Bitcoin, particularly during the recent crypto winter, are now cashing out on their investments, according to analysts. BTC had $96 million in liquidations within the day, with $82 million coming from longs and $14 million from shorts, according to Coinglass.

The continuous dump of Bitcoin by government wallets has also contributed to the massive selling pressure in the market. In the past 24 hours, the German government has once again transferred a large amount of Bitcoin to crypto exchanges and an unknown address, totaling $185.77 million, according to Arkham Intelligence's on-chain monitoring platform. Within the same timeframe, the US government's wallet also had an outflow of $13.67 million to an unknown address.

The Crypto Fear & Greed Index dialed to 44 in the “Fear” territory amid the ensuing FUD (fear, uncertainty, doubt). The score indicates a cautious sentiment of traders and investors toward the crypto market. Nevertheless, it presents a buying opportunity for those with a strong risk appetite.

Ali Martinez, a popular crypto trader on X, further highlighted the growing anxiety of investors during the latest dips. However, just a few hours ago he claimed that BTC price was continuously declining because people kept buying the dip! The analyst also noted that a $36 million liquidation pool is up for grabs in the $57,700 range.

#Bitcoin investors are starting to feel the anxiety as the dip deepens! pic.twitter.com/upCrNkpgz0

The #Bitcoin dip keeps dipping because too many people keep buying the dip! Now, a $36 million liquidation pool is up for grabs at $57,700. pic.twitter.com/PsozPARFXQ

Bullish narratives in Bitcoin playing out

Several narratives provide a silver lining for Bitcoin's future against the backdrop of falling prices. All of these are tied to developments in the ongoing race for the 2024 US Presidential Election.

Geoffrey Kendrick, Standard Chartered's head of forex and digital assets research, recently predicted that Bitcoin might hit $100,000 by August if former US President Donald Trump retains his momentum in the surveys. It comes with the assumption that incumbent President Joe Biden will not be substituted by another candidate on the way to the November polls, though.

Bitcoin to $100K if Biden Stays, $50K if He Drops Out, Standard Chartered SaysStandard Chartered's head of forex and digital assets research, Geoffrey Kendrick, predicts that Bitcoin could reach a new all-time high in August and hit $100,000 by the U.S. presidential election in… pic.twitter.com/NnQEkyTRBk

Speaking of Trump, the outspoken businessman-turned-politician has been very vocal in his support for Bitcoin and crypto in his campaign this year. The former president earlier stated that he wanted “all the remaining Bitcoin to be made in the USA.” Today, several analysts and news outlets like Forbes suggest that Trump may be considering keeping BTC as a reserve asset, similar to El Salvador’s move going all the way back to 2021.

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